BOI spearheaded roadmap localization workshop in Region 8

BOI together with the DTI Regional Office in Eastern Visayas, is capacitating the region’s various industry players, businesses, local government units and agencies, and concerned stakeholders in a regional conference today (June 22, 2016) in crafting their localized version of national industry roadmaps and achieve further growth and competitiveness.

Dubbed as “Industry Roadmaps and the AEC Gameplan: Roadmaps Localization for Competitiveness”, the regional conference aims to build the capacities of local industries and stakeholders including micro, small and medium enterprises (MSMEs) in crafting their localized industry roadmaps aligned with the national industry roadmaps.  The conference also aims to discuss the economic opportunities and potentials for local industries and sectors in the Eastern Visayas region and how they can take advantage of the many opportunities with the ASEAN Economic Community (AEC) already in place.

At the regional conference, BOI Resource-based Industries Service Division Chief Sandra Marie Recolizado discussed the proposed Ecological Industrial Zone in Leyte, a project under the Copper Industry Roadmap which aims to promote the integrated development and competitiveness of copper and other industries in the context of the ongoing rehabilitation efforts in the region and thus promote sustainable local employment.  The proposed industrial zone also aims to promote industry clustering to reduce businesses’ logistics costs and ensure reliable supply of power.  Leyte has one of the biggest geothermal power plants in the Visayas region.

Conservation and protection of the environment is a major focus of the project, hence the concept of an ecological industrial zone instead of a regular industrial zone.  The proposed ecological industrial zone itself provides services for waste management and recycling. It also takes into consideration climate change risks, thus the zone’s buildings and roads will be designed to be much resilient against disasters and calamities. A plan to have an underground electrication for the zone is also being considered.

It is expected to house potential locators in the field of copper wire rod casting facility, downstream copper industry such as but not limited to copper wire producers, major industrial concerns that need power and port facilities such as steel, copper-using industries, and other business activities identified by industry that may support the economic rehabilitation of typhoon-affected areas such as garments.

Leyte is home to the copper smelting and refining operations of the Philippine Associated Smelting and Refining Corporation (PASAR). The company is currently operating within the 425-hectare Leyte Industrial Development Estate in Isabel, Leyte.  PASAR is the country’s only copper smelting and refining firm and is one of the biggest in Asia. The copper cathodes used in the manufacture of electronics that are produced by PASAR are among the top 10 export products of the country.

The localization of roadmaps in the Eastern Visayas Region also focused on processed marine, and meat products, and natural health products—the dominantly thriving and potential industries in the region which can be aligned and linked with the national industry roadmaps.  Presenting the industry situations on these sectors are resource persons from the private and government namely: Clarita Lapus, President of Mama Sita Foundation Inc. on processed marine products; Francis Penaflor, BOI Sectoral Champion for Processed Meat on processed meat; and Joracio Abelarde, Chairman Emeritus of the Chamber of Herbal Industries of the Philippines, Inc.

“Now that we have the Industry Roadmapping Program in place, we must seize opportunities with government acting as facilitator and coordinating with industry stakeholders in crafting the regional industry cluster roadmaps. These industry roadmaps will allow MSMEs to move up the value chain and actively participate in the vast AEC market,” said DTI Assistant Secretary Rafaelita Aldaba who also discussed the Philippine’s New Industrial Policy for More Competitive Regional Economies during the multi-sector regional conference.

Assistant Secretary Aldaba also challenged the region’s stakeholders to formulate industry roadmaps to create more high productivity jobs which are vital to reduce poverty, speed up rehabilitation efforts, and transform the regional economy.

Aside from Assistant Secretary Aldaba and the resource persons for the sectors identified, the other presenters and their topics in the conference include Dr. Cielito Habito, Chief of Party of the USAID TRADE Project on Regional Integration and the National Development Agenda on regional integration and the national development agenda; Victoria Antonio, Senior Advisor of GTZ-Promotion of Green Economic Development on Greening the Industry Roadmaps; and Meylene Rosales, National Economic and Development Authority (NEDA) Region 8 Division Chief for Policy Planning and Formulation on behalf of Atty. Bonifacio Uy, Regional Director of NEDA Region 8 on the potentials and challenges in the region.

The Industry Roadmapping Program is the BOI’s program in partnership with various industries and sectors in the development and implementation of industry roadmaps.   An Industry Roadmap assesses an industry’s performance, opportunities, and challenges, outlines the vision, goals and objectives, strategies, timelines, and various interventions it needs to be globally-competitive. The roadmaps are crafted and implemented by the industry players themselves with the guidance of the BOI as well as other government agencies.  To date, there are already 40 sectoral roadmaps submitted to the BOI. Of the 40, 32 roadmaps have been completed and are currently being implemented or for implementation, while the rest are still subject to enhancement/finalization.

 Through regional conferences, the BOI is going around the country since last year to encourage localization of roadmaps in the regions especially those industries that are dominant or thriving in the area and its alignment and linkage with the national industry roadmaps.   BOI, in coordination with the DTI regional offices, conducted nine regional conferences in Iloilo, Cebu, Davao, Baguio, Tagaytay, Pampanga, Zamboanga, Palawan and Naga last year.  Early this year, regional conferences for the Ilocos Region were held in La Union and in Tugegarao for the Cagayan Valley Region.  The last leg will be held next month in Butuan for the Caraga region.

GVC analysis on 5 key sectors conducted

Global value chain (GVC) studies on the aerospace, automotive and auto parts, chemicals, electronics and electrical machinery, and paper industries will be presented to various stakeholders through a public forum on  June 2, 2016 at the Makati Diamond Residences.

Conducted by the Duke University Center on Globalization, Governance, & Competitiveness (Duke CGGC), the five studies were commissioned under the Science, Technology, Research, and Innovation for Development (STRIDE) Program and the Advancing Philippine Competitiveness (COMPETE) Project of the United States Agency for International Development (USAID) for the Philippine Board of Invetments (BOI), the industry development and investments promotion arm of the Department of Trade & Industry (DTI). The GVC studies are intended to assist the BOI in its efforts to further develop its framework and strategies in promoting industries built on best practices.

“The findings of the studies carried out by the Duke CGGC are important in formulating policies and programs on how firms, SMEs in particular, can participate in GVCs and, for those that are already participating, how to upgrade and move up the value chain. The research studies provide evidence  which serve as basis to improve our industry development strategies towards a more globally competitive Philippine manufacturing industry,” said DTI Assistant Secretary for Industry Development Rafaelita Aldaba.

The Philippine new industrial policy as contained in the Comprehensive National Industrial Strategy (CNIS), the country’s blueprint for linking the manufacturing, agriculture, and services sectors, aims to improve the country’s competitiveness by upgrading the productivity of its industries and removing the binding constraints to their development.

Under this policy, the government acts as enabler of the private sector, which is the proximate engine of growth, and serves as facilitator of initiatives that will create the proper environment for private sector development. The new industrial policy is cluster-based and GVC-focused and intends to build strong regional economies in the country and focus government efforts in integrating local industries into regional production networks and enabling SMEs to move up their GVCs.

The GVC studies particularly focus on how the mentioned industries can reinforce forward and backward linkages. The analyses cover the structure of each industry’s value chain—from inputs, technologies, processes through distribution and marketing—at the global level, and indicates where the Philippines currently fits within these GVCs. It explores the global competitive environment for these value chains, and how the Philippines compares relative to its competitors.

The GVC studies also analyze the most binding contraints preventing Philippine firms from moving up the industry GVCs, and recommend strategies for value chain upgrading and improving competitiveness, as well as the needed investments, human resource requirements, and the roles of government and industry stakeholders in implementing these.

BOI lauded industry partners

Dubbed as “A Commitment Beyond 2016: Securing the Future of Philippine Industries”, the gathering was hosted by the Department of Trade & Industry (DTI) through its industry development and investments promotion arm—the Board of Investments (BOI) led by Trade Undersecretary and BOI Managing Head Ceferino Rodolfo at the Makati Diamond Residences in Makati City.

“The gathering is our humble gesture of appreciation to our partners in industry development for their support, involvement, and partnership with us to further strengthen the competitiveness of the country’s industries and sectors,” said Undersecretary Rodolfo adding that remarkable economic gains were achieved through the industry development initiatives pushed and implemented in the last five years.

MRP Cluster Q1 meeting

The Manufacturing Resurgence Program (MRP) Cluster held its First Quarter Meeting at the Board of Investments (BOI). MRP-implementing government agencies agreed that the various MRP projects being implemented are relevant and critical to the manufacturing industry’s growth and development and be globally competitive.

The MRP aims to improve the existing capacity of industries, strengthen new ones, and maintain the competitiveness of industries with comparative advantage. It also seeks to build-up agriculture-based manufacturing industries that generate employment, and support small-holder farmers and agri-cooperatives through product development, value-adding, and integration to big enterprises for marketing and financing purposes.

Assistant Secretary Aldaba reported DTI’s ongoing MRP projects namely the Comprehensive Automotive Resurgence Strategy (CARS) Program, Die & Mold Making and Design Training in partnership with the MIRDC and the PDMA; Philippine Rubber Investment and Market Encounter; enhancing the competitiveness of the Philippine coffee, establishment and implementation of an Aerospace Quality Management Systems Project; Product and Technology Holistic Strategy Project for the electronics industry, Study by the UP School of Urban Planning, Economics and Anthropology on the revival of key industries in the Sixth District of Quezon City; Cottage Industry Technology Center Transformation Project, Sectoral Value Proposition Development, Regulations review for priority sectors, Industry Roadmapping Project including the development of roadmaps for the footwear and garments and textile sectors; conduct of regional conferences and localization of industry roadmaps; and forum and conferences on trade and industry development talks and updates on various industries and sectors.

DTI’s BSMED on the other hand separately reported its MRP initiatives including the conduct of SME Roving Academy, establishment of Shared Services Facilities and Negosyo Centers.

DA meanwhile reported the highlights of its accomplishments of programs and projects identified under MRP namely the High-Value Crops Development Program which assisted coffee growers, the establishment of rice processing centers for farmer associations, the Philippine Rural Development Project’s I-REAP Component, and the Farm-to-Market Development Program which provides connectivity of the agri-fishery production sites to the processing and market centers.

During the meeting Assistant Secretary Aldaba highlighted the importance of DTI and DA’s close coordination since most of the projects of the two agencies are interrelated.  As identified in the Comprehensive National Industrial Strategy (CNIS), the country’s blueprint detailing the overall industrial strategy, the strong linkage of the manufacturing sector and agriculture will stimulate economic growth.

PCA reported the Kaanib Coco Hub Project which aims to increase the income of participating coconut farmers by providing processing hubs for coco-based products such as virgin coconut oil, coco sugar, coco coir, among others.   PCA also reported it is currently working on the coconut roadmap together with the industry players.

Meanwhile DOE, NEA, and NPC separately reported on their MRP initiatives, all of which are geared towards providing sufficient energy resources to stimulate the growth and development of various industries and sectors.

DTI encourages venture capitalists to invest in local startups

DTI encourages venture capitalists to invest in local startups as the country continues to improve its global innovation index.

On the 2015 assessment of the World Intellectual Property Organization (WIPO), the Philippines climbed 17 notches and now ranks 83rd from its 100th ranking in terms of global innovation index.

According to the digital startup roadmap, the country is expecting 500 startups with a total funding of $200 million by year 2020. It can have a cumulative valuation of $2 billion.

Furthermore, the development of an innovation ecosystem will also address the government’s agenda of inclusive growth through job creation. By 2020, the Philippine startup and innovation community aims to create 8,500 high skilled jobs for Filipinos.

Industry roadmap localization

BOI spearheaded the “Industry Roadmaps and the AEC Gameplan: Roadmaps Localization for Competitiveness” I Ilocos . The conference discussed the crafting of regional industry roadmaps and its alignment with the national industrial strategy.

The localization of industry roadmaps and the AEC Game Plan regional conference in Ilocos is one of a series of localization conferences. Since last year, similar regional conferences have been conducted in Iloilo, Cebu, Davao, Baguio, Tagaytay, Pampanga, Zamboanga, Palawan and Naga.